DELL COMPUTERS could soon be refloated into public hands, according to reports which suggest that its president could keep control thanks to a neat little loophole.
Dell has successfully expanded its portfolio from desktops and laptops through to an end-to-end business/enterprise offering everything from servers to storage.
"We've completely transformed our company and become a key leader in huge segments of the industry," said Mr Dell.
Dell's server revenue has increased over 50 per cent in Q1, leapfrogging HPE, whilst it also became the top PC supplier in the US during the same period.
It is expected that the partners are looking to buy out investors with special shares that were used to finance Dell's purchase of EMC, allowing it to be tracked separately from the main company. Dell currently owns 82 per cent of EMC.
Now, here's the game. The shares have been arranged so that, once repurchased by Mr Dell and Silver Lake, these shares would get weighting that allows the holders multiple votes.
In other words, when the rest of Dell's shares float, the special EMC shares will guarantee Mr Dell can keep his control of the board. Sneaky bit of genius.
So that means that thanks to the benevolence of his own fortune and that of his finance partners, Dell has been able to reinvent itself, in private, go public again as a much stronger company, let other people finance it and make it grow even more, and still keep the structure that has been working so well for it lately.
Its estimated that $67bn was used to buy EMC and a further $25bn was used to buy out Dell investors and take the company private. The result though could be far more valuable - let your company live its best life, then watch the money roll in. μ
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